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Code · CFR · Title 12 — Banks and Banking · Part 722 — Appraisals · § 722.203

§ 722.203. Quality control standards.

92 words·~1 min read·/us/cfr/t12/s§ 722.203·

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Mortgage originators and secondary market issuers that engage in credit decisions or covered securitization determinations themselves, or through or in cooperation with a third-party or affiliate, must adopt and maintain policies, practices, procedures, and control systems to ensure that automated valuation models used in these transactions adhere to quality control standards designed to:
(a)Ensure a high level of confidence in the estimates produced;
(b)Protect against the manipulation of data;
(c)Seek to avoid conflicts of interest;
(d)Require random sample testing and reviews; and
(e)Comply with applicable nondiscrimination laws.
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